The recent surge in Bitcoin’s price, reaching nearly $35,000, has captivated the attention of cryptocurrency enthusiasts and experts alike. With the spot Bitcoin ETF approval on the horizon, many believe it to be the driver of Bitcoin’s price movement.
However, Arthur Hayes, co-founder of BitMEX, suggests that there are more reasons behind Bitcoin’s resurgence. He shared these reasons in a post on X.
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Runaway Inflation
Hayes points to runaway inflation as one of the most critical factors influencing Bitcoin’s growth. The pandemic and the financial policies adopted to fight it forced many countries into fast-rising inflation. Many quantitative easing measures and stimulus packages were employed to fight inflation.
Although these were initially deemed necessary, they have inadvertently created an environment where people’s income cannot keep up with the inflation rates. The inflation has caused increased interest in cryptocurrencies like Bitcoin, which many experts see as a hedge against inflation.
Rumors of a “Bald Man” ETF
Hayes also mentions the “bald man” ETF rumor. This intriguing rumor has been making the rounds in the crypto market, with no confirmed details. That has not stopped it from capturing the attention of the entire market, with some speculating that the bald man might be Coinbase CEO Brian Armstrong.
The mere prospect of such an ETF has generated excitement and speculative interest in the cryptocurrency market. The power ETF announcements have in the current market can be seen in the spike in Bitcoin’s price after a recent rumor of a BlackRock ETF approval.
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The Makings of a Bull Market
The final factor listed by Hayes is an impending bull market. Bull markets come with optimistic sentiment, growing investor confidence, and an overall positive outlook for the asset class. Bitcoin has recently demonstrated its resilience as an asset.
Institutional interest, regulatory developments, and the broader adoption of cryptocurrencies have collectively contributed to this optimistic market sentiment. As such, investors now see Bitcoin as a long-term store of value and a potential asset class in its own right.
Bitcoin is trading at $34,198, down 0.6%% in 24 hours and 20% in the past 7 days. It is up by almost 31% in the past month and is expected to keep rising. Bitcoin’s current rise is the result of multiple factors contributing to its remarkable growth.
These elements, in conjunction with Galaxy Digital CEO Mike Novogratz’s belief that ETFs will be approved this year, could send Bitcoin even higher before the end of the year.
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